West Virginia Continues Medicaid Leadership with Unisys-Developed Solution

Pioneering state leads nation in federal certification of its high-tech Unisys claims solution

BLUE BELL, Pa., July 16, 2007 – The West Virginia Department of Health and Human Resources, Bureau for Medical Services (BMS) – a pioneer in Medicaid reform and driving policy to manage its management information systems – has awarded Unisys Corporation (NYSE: UIS) a contract to continue to provide Medicaid claims services, the company announced today.

Under this one-year contract West Virginia BMS awarded the company, Unisys will continue to manage and process Medicaid claims via its innovative health care payer administration solution, known as Health PAS - the only federally certified MMIS solution made up of commercial off-the-shelf software (COTS) in the country. The state has the ability to award three more one-year contracts to Unisys to continue operating Health PAS.

Using this new Medicaid Management Information System, West Virginia is one of the first states to implement a comprehensive Medicaid reform program under the Deficit Reduction Act (DRA).

States Grapple with Medicaid Reform
In 2005, President Bush signed the DRA into law. The legislation restricts spending for entitlement programs, such as Medicaid and Medicare. The DRA is expected to slow the growth of Medicaid spending by nearly $5 billion between 2005 and 2010.

In response to Medicaid reform challenges, state Medicaid programs are increasingly moving away from costly legacy systems to more cost-effective, flexible information technology solutions that better serve their stakeholders. States are looking for solutions that handle electronic and Web-based transactions, integrate with multiple agencies, quickly handle changes and control and reduce costs.

The Unisys Health PAS solution meets those challenges. Built to meet the principles of the DRA and the new federal Medicaid Information Technology Architecture (MITA) standards, Unisys Health PAS helps states reduce administrative and operating costs; better manage and control benefit expenditures; and adhere to increasing security and privacy standards.

Health PAS Helped West Virginia Lead the Pack
Working with Unisys, West Virginia began overhauling its system more than four years ago, taking the lead in streamlining and evolving its Medicaid systems ahead of most states. Under the direction and assistance from the BMS, Unisys developed and tailored the Health PAS medical/dental and pharmacy claims payment systems for the state.

“As an early adopter of transformational technology and processes, West Virginia is well ahead of the curve in terms of what all states in the country are looking to do with their Medicaid management information systems,” said Gary Greenberg, president, Health Information Management, Unisys.

“Because of Health PAS’s flexibility and ease of change, the solution makes sense for any state undergoing policy changes and tailoring related to Medicaid reform initiatives.”

Benefits of Unisys Health PAS
The Unisys Health PAS system offers a range of benefits to state governments:

• Open - based on open standards, which permits the easy integration of best-of-breed components;
• Flexible - seamlessly integrates with other systems; changes can be accomplished within hours/days instead of weeks;
• Scalable - can support new components to enhance performance or meet new requirements, adapting as Medicaid programs evolve;
• Configurable - rules-based and driven by policy, not by technology; can support unforeseen policy requests;
• Multi-plan functionality - can handle a variety of health care plans/benefit structures; and
• Familiar Windows/Web-based interface, which decreases the need for training.

Late last year, West Virginia BMS received federal certification for its Medicaid system. It is the first time that the Center for Medicare and Medicaid Services has certified a next-generation commercial off-the-shelf system that conforms to MITA principles and has the flexibility to make quick modifications in the ever-changing healthcare environment.

Federal certification for the West Virginia system is a significant milestone, because the certification ensures maximum funding for the federal portion of Medicaid dollars.

As the state’s fiscal agent, Unisys provides an array of business process outsourcing services that include:

• imaging and managing the workflow of paper claims;
• administering the authorization, adjudication and resolution of paper and electronic claims;
• providing contact-center and help-desk services and training; and
• delivering operational, system maintenance and enhancement support.

In West Virginia, Health PAS manages approximately 22,000 participating healthcare providers; 304,000 members – or Medicaid recipients; and about 19 million healthcare claims annually.

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Contacts

Lisa Meyer, Unisys, 703-439-5887 lisa.meyer@unisys.com   Jenny Grendel, Peppercom, 212-931-6107 jgrendel@peppercom.com